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>>. >> megyn: what do you think about that wives ee case. let me know on twitter and what do you think about the gun ad. here is studio "b" with gregg jarrett in for shep. >> the news begins anew. state department reporting will not negotiate with militants after they offered up american hostages, details on the standoff at the african oil field coming up. a admitted cheater lance armstrong has confirmed the admitted the accusations and the confession in his own words. coming up. comess cops say they have busted the man have beating a woman and tossing her on the subway tracks.

all ahead unless breaking news changes everything on studio "b". >> gregg: first, islamic militants holding hostages at a bp gas field in africa reportedly offering to trade to americans for a pair of terrorists jailed here in united states. the militants offered the americans in exchange for the so-called blind sheik convicted of target world trade center back in 1993 and they are asking for release of another person. the algerian military launched the rescue operation yesterday without any american help despite the pentagon's offer to assist. algeria state's news service reported that 100 of the hostages are flee. two americans managed to escape but today, the state department reports there are still american hostages.

no word on the exact number or their condition. today marks three days since the militants stormed the facility near the libyan border. algerian state television reporting that it is pay back letting french jets use their airspace to attack militants in mali. hillary clinton just spoke to the algerian prime minister. what did she say about that conversation? >> she just spoke at the state department. she said that the hostages are still in danger. it is an ongoing situation. there was not a lot of clarity yesterday about what was happening at the facility but it is still ongoing. she also said she offered more counterterrorism help to the al swreerians, help they have already provided to the algerians suggesting there is help within the country, but that is something that the algerians have rebuffed. >> i spoke with the algerian

prime minister again this morning to get an update on this very difficult situation, and to underscore again that the utmost care must be taken to preserve innocent life. >> reporter: untold members of hostages were killed when the algerians opened fire on a convoy of five vehicles as the hostage takers tried to leave the bp complex. the algerians were given the fly out wounded today. they say a c-130 is heading toward a air base in italy. there are on the plane with other wounded but no americans. >> gregg: that raid bungled but the hostages are praising the algerian military force? >> reporter: that is right. u.k. and japan have expressed

frustration because they didn't tell them in advance. if you listen to the hostages, those who did survive and were released and it started to be buffed out and flown out, they say the algerian army saved their lives. remember this was a big complex. algerian government said they released hundreds of hostages but not held in the same place. some were hiding. >> i feel safe at the moment. i won't be happy until i'm in the u.k. and see my family. my heart goes out to the guys that are still there. hopefully they will get home safe. >> reporter: one irish hostage told his brother who then relayed to a british newspaper that he escaped when the fifth vehicle in that convoy was struck by the algerian military.

he said that the hostage takers had put bomb belts around some of the hostages, but he managed to get out. >> gregg: jennifer griffin, thanks very much. let's turn to lance armstrong. he has finally admitted for all those years and for all the world to hear that he is a cheat he a fraud and liar and bully. his epic career was complete sham. he came clean in an interview with oprah winfrey confessing he took banned substances to win we're talking about testosterone and human growth hormone. >> did you ever take banned substances or dope? >> yes. >> gregg: for years he denied cheating. he called other people liars trying to ruin their reputations. he sued anybody who tried to tell the truth about him. he says the whole story was so

perfect for so long it was a myth. >> the truth isn't what i said. you win the tour de france seven times, happy marriage and happy children, its perfect story and it wasn't true. >> gregg: the marriage wasn't that happy for his wife. he says he will spend the rest of his life. out right lies, some are saying that he was cold and much too short on details. casey stegall is live outside live out the foundation,. >> he says he looked up the definition cheat and decided, yeah, it doesn't really apply to me. he viewed it as simply leveling the playing field. talk to us about that.

>> it was pretty interesting, wasn't it? the interview was evasive. he admitted to the doping but he said he didn't feel badly at the time he was doing it. he was straightforward about that, but then when it came to real specifics like why are you wanting to come clean now? were you the ring leader of this whole doping program as you have characterized? how did the process work? did you pressure your fellow teammates to use that drug, that is when he started to use the tap dance. others have been talking about his sense of arrogantness. >> means i to keep doing it? >> yes, but that is like saying we have to have air in our tires or we have to have water in our

bottles. that was, in my view part of the job. >> reporter: pretty bold statement, right. part two of the interview airs tonight and some of the items said to be discussed the foundation here, his children and, gregg, the millions and millions of dollars worth of celebrity endorsements he's lost in this whole mess. >> gregg: what veto action today from the live strong foundation? >> they are disappointed clearly. if you look at it the foundation here was misled, as well. after all, they are trying to do some good in this world and they have raising more than $500 million for people who have been affected by cancer since this organization was started back in 1997. obviously, there is still very raw emotion here. >> he has a crawl over broken

glass and a lot of people he has to come to jesus with. i feel personally betrayed. i feel like i'm owed an apology. >> reporter: hours before he sat down for the interview he did come to the foundation and spoke to about hundred staff members and apologized to the group as a whole, but made no confession. they learned all last night with the rest of it's. >> gregg: casey thanks very much. >> joining us now, fox columnist peter and justice department official, doug burns who is very fine lawyer. peter, was this classic lance armstrong self-serving manipulative and still trying to dictate the narrative? >> instant fear and almost an act again.

it never stops with lance. there are two women in this story, betsy andrew and emily whose lives he has ruined. he called them out for doping and sued them. he ruined their lives. last night very off the cuff, smiling. he is bad dude. last night he came off like tas his remorse dubious here. did you get the sense this guy is not at all sorry that he cheated but he got caught? >> as a journalist and never covered him directly but i have fellow journalists that he controlling the message and he is bully. even last night going on oprah winfrey, picking the person to interview him and how it is going to look. oprah did a fine job but if he goes on a show like 60 minutes, there will be a different tone to the interview. >> gregg: i'm sure his lawyer

tell him to shut up and don't do this, you are in legal jeopardy and criminally, as well. though could resurrect the money laundering and drug trafficking, right? >> yes, there wants investigation in los angeles which was described as being abruptly shut down. reality they could reopen it. additionally there is what you call a relater or key lawsuit that was filed under the false claims act basically saying he did he playeded the government. postal service. >> gregg: it's a whistle-blower case brought by floyd landes? >>it remains sealed while they investigate for 60 days. yesterday was the deadline for the government to come in or not so armstrong might have gotten advice, you do the show at night. they extended another 60 days. >> gregg: he could get nailed for perjury he testified that he

didn't use dope. he defamed all kind of people. they could sue them now. >> number one, he defamed people. number two, he sued the british tabloid for defamation. they forked over half a million dollars. plaintiff settled the suit knowing tha the that the story was true and not false. they can reopen the settlement. >> gregg: the motive he ignored his lawyer because the cheering crowd stopped. he missed the adoration he couldn't compete any longer. this is lance trying to do a deal and get rid of the lifetime ban so he can compete. >> he wants to clean the plate here and start anew and redemption story. i'm not sure the american public or world wants to accept that. >> gregg: good to see you both. flu season getting bad and

worse. warning for health officials as the disease kills dozens sending thousands mor to the hospital. did notre dame superstar put one over on the media. is he another sports figure who is lying? we'll get into it. take tylenol or take aleve, the #1 recommended pain reliever by orthopedic doctors. just two aleve can keep pain away all day. back to the news.

>>. >> gregg: deadly flu season is getting a whole lot worse. federal health officials release can the latest numbers and they are grim. 29 dead, 20 children -- more than 5,000 in the hospital and feds say it's hitting elderly the hardest. they don't have a total number of death but people over the age of 65 most likely to die from the flu and they stress it's not too late to get a flu shot if you can find one. clinics have reported running out of the vaccine. jonathan serrie is live in atlanta home for cdc. what should people do if they

want to get the shot? >> best advice is to call around although there are reports of shorts ajs, these are isolated. you call one doctor's office and he or she might be out. the next pharmacy and they may have ample supplies. manufacturers of these vaccines have revised their estimates. originally they expected to produce 135 million doses of flu vaccine over the course of the season. now, they believe they are going to produce a total of 145 million doses of vaccine for this flu season, so ten million more. it's not too late for you to get a flu shot and not too late for your doctor to order more vaccine. >> gregg: how much longer do they expect the flu season to last? >> flu is hard to predict but we posed that question. here is what he said based on previous flu seasons. >> average flu season lasts

about 12 weeks and this is week six. we're about in the middle but only time will tell exactly what happens this year. >> reporter: he says this year is similar to others where h 3 n 2 was the dominant strain. it affects the elderly and very young. so the doctor says it's important if you are one of the age categories or have an underlying health condition to call your doctor as soon as possible if you develop symptoms. drugs like tamiflu are highly effective and can prevent serious complications slug hospitalization. >> and 29 children are dead and that number likely to grow. >> gregg: right now the only thing we know for sure is the dead girlfriend is that she never existed on begin with. that did not stop the notre dame star to talk about as if she was

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>> gregg: there is whole lot that does not add up about the fake girlfriend hoax involving manti teo. he says somebody tricked him into thinking he had an online girlfriend and it appears he referred to her into interviews and even after he supposedly knew she didn't exist. he took the team to the national championship, which he lost, but he gained greater framed that his grandmother and girlfriend died hours apart. the part on the grandmother is true but there was no girlfriend. compelling story playing through tragedy a narrative that was

untrue. mike has the news from the chicago bureau. there is still a lot of questions and the dates and explanations, they seem inconsistent. >> the dates and explanation is not adding up. if you look at the dates, the university first realized there was no lennay kakua. teo reportedly got a phone call from the supposed dead girl's phone number when he lend it was a hoax. still on december 8th he gave an interview. in the interview he talked about losing his grandmother and girlfriend to cancer. then december 9th, he talked about playing after the fictitious girlfriend was dead after the fictitious girlfriend was buried. two references, one sports writer there was no perception that teo should be doubted. >> if there was one person in that program that you would trust, that you would take his word as gospel it would

manti teo. that is why we were floored. >> reporter: sports writer does not fault the university for sitting on the information ahead of championship game. >> gregg: doesn't seem like fans are giving him a pass here? >> initially they did by a large majority but now we're hearing a little more skepticism from the fans saying the whole thing just sounds fishy to them. >> emotionally attached to her? another thing she is about to die of cancer. don't come if you need play a game, but he doesn't visit her at all? what kind of love is that? >> reporter: a camera did get a quick glimpse of teo. he is down in florida and presumably he is getting ready for the combine and draft. fans say they want to hear from

teo and make sense of all that. last they have heard, no plans for public comment anytime soon. >> gregg: we're getting word that notre dame expects manti teo to talk soon. we'll see if he does that. joining us on the set, co-host brian, the story is really fishy. this thing stinks more than greg gutfeld's gym socks. >> jonathan hunt, gym socks, he may be covering it. don't pretend get the loose ends here. this has moved to this degree. we know the friend of manti teo. he is behind it by multiple sources. why does it make more sense than ever? he pulled off the same scam four

years ago using the same exact name and the same exact scenario of a car accident leading to the death. >> gregg: same scam once before. >> that his friend on the game, using female voices, he would hop on the phone and make it seem as there was girl here. do i buy it? he has not tell the truth, i met her at stanford and in 2009 and the love is real. the picture they use on the twitter page is the same one he used four years ago to pull the scam off. here is the ultimate kicker, i think -- we thought the girl didn't exist but the girl does exist. according to arizona cardinals, i met her. she is tall. she has athletic build and

volleyball player. she is really pretty. troy says i work with her in an outreach program. >> gregg: this is getting so bizarre. let me throw another curve. you are used to fast balls. we need something to gin it up a little. >> two days after the hoax is revealed, he says, he still goes on television and talks about her. take a listen. >> i don't like cancer at all. cancer hit my grand parents and lost my girlfriend to cancer. >> gregg: here he is talking about his girlfriend that never existed and he already known it was all a hoax. he is complicit in the very least of perpetuating the hoax. >> then he learns something later notre dame, i researched it and it's crazy and naive and victim. however, i guess his fury was why bring this story forward and overwhelm the notre dame game.

let's play the game and he did not have a game and not be a distraction to my team. >> gregg: what about notre shame even though they knew "a" there was a hoax that was being perpetuated and teo was making inconsistent statements about it? >> i would like to see the investigation. they spare no money. they held it but i would like to see what do they see made them show sure it is a hoax. they could have said, i took him at his word. ends like this. instead they say, i stand behind him. he is still our guy. i feel bad because he is not that naive 21-year-old. she street smart. >> gregg: in trials, they give jury instructions and standard one if there is a witness that lies in one part, you may conclude the witness is lying about everything. maybe that is what is happening

here. >> are you assuming that i went to law school with you. i will say this. at least he didn't break a law. he just broke everybody's trust and he makes a lot of journalists question about it so my girlfriend or mom died. i'm sorry about that. can i see a death certificate. >> gregg: you damage a lot of kids. get total bottom of the stinky gym socks. >> part of that story is coming up now. >> gregg: catch them at 6:00 a.m. eastern right here brian and friends. >> new reports of a prisoner exchange in hostage crisis in algeria there is word the attackers might release two americans if the u.s. let's two renown terrorists walk free.

absolutely stunning attack on a subway. look at that. the guy is tossing a woman right on the tracks and surveillance cameras catch the whole thing. did they catch him? we'll tell you coming up. at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. ( bell rings ) they remwish i saw mine of my granmore often, but they live so far away. i've been thinking about moving in with my daughter and her family. it's been pretty tough since jack passed away. it's a good thing you had life insurance through the colonial penn program. you're right. it was affordable,

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americans are among the hostages. the state department also responding to reports that islamic militants that overran the facility are offering two of the american hostages for a pair of convicted terrorists currently behind bars in the u.s. secretary of defense leon panetta has warned there will be no place to hide to anybody that harms an american citizen. jonathan hunt. any clarity on the situation with these americans? >> no clarity but we do have breaking news. the militants themselves through the african news agency has just said they are holding a total of seven hostages still, two of those again, americans but also revealing now that they have three belgians, one japanese citizen and one british. in terms of the two americans, one-eyed leader wants to trade those americans for the blind

sheik who is being held here in prison in connection with his role with the world trade center bombing. a state department spokeswoman has a response to that. >> the united states does not negotiate with terrorists. i'll say it again, the united states does not negotiate with terrorists. >> do you expect the same? >> we do not negotiate with terrorists. we're obviously in consultation with the al jeer yanks. >> gregg: they will be no negotiation over any kind of swap for the terrorists prisoners held here on those two as we understand it, american hostages still held. >> gregg: does it seem to you that the u.s. is having great difficulty in getting reliable information? >> yes. hillary clinton being careful not to criticize the algerian

government but many leaders have. it's clearly difficult to get information out of this remote area of algeria and the algerian government being anything about forthcoming. just yesterday, they said that this operation at that gas facility was over. at first reported on the fox report, that may well not be true and they did not have control of the entire gas facility. we learned today that those reports were in fact true. they didn't have complete control. frankly, gregg, the best information is from the hostages who have now got out. >> gregg: thanks very much. let's turn to jennifer cooke. what are america's options here? >> algeria clearly as a sovereign country has control of the situation. i think many, if the british responses is anything to go by,

they were surprised that they acted so quickly without consultation. the u.s. really is dependent on the algerians right now in terms of what the negotiation strategy will be. >> gregg: our longstanding policy we don't negotiate with terrorists u don't envision handing over the blind sheik behind the 1993 world trade center bombing, do you? >> absolutely not. nor do i think the algerians, they have a quick harsh response that killed many of the terrorists and many of the hostages as well, i think is an indication they don't plan to negotiate in any way either. >> gregg: all of surrogates operate in ten african nations, they control northern mali, about the size of texas. does this attack show that al-qaeda has become emboldened, it has grown strong her that belie the obama narrative?

>> they have always separate from the main al-qaeda and links are unclear. the collapse of libya certainly empowered them with arms and fighters. the collapse of mali government and take over of northern mali has allowed them to come together in a way they hnlt before arm themselves. now large attacks into algeria that had successfully pushed them out into previous years. >> gregg: 9/11 commission that al-qaeda believes that america just can't tolerate casualties and best way to drive the u.s. from any region is to attack them. they cited the terrorist attacks in lebanon and somalia in which the u.s. fled. is that the thinking of these terrorists? >> no, in the first instance this was not directed at the united states.

in the first instance they said this is retaliation against algeria for allowing the french to use their airspace to attack northern mali and against the french for attacking mali. >> gregg: you don't think the fact that westerners and americans in the group working at that particular gas field had anything to do with it? >> i think certainly westerners, they may not have known who specifically was in there and obviously they have the prize which is u.s. citizens and they are making the most of that in their rhetoric. i don't believe that was the original intent. >> gregg: okay. jennifer, thanks very much. >> cops say they have busted the man suspected of brutally beating an innocent woman and tossing her on the subway tracks. you have ceiling seen the chilling videotape. this is philadelphia and this is surveillance tape. you can see the man attacker and drag her by her ankles before tossing her on to the tracks. thankfully a train was not

pulling in at the time. she was able to scramble over the embankment. they caught the guy after noticing his jacket and he still had the woman's cellphone on him. the woman was climbing off the track. she did suffer bumps and bruises. some people criticize police for not warning the suspect was on the loose before they eventually caught him. they didn't want to hurt their investigation. half a million people will join president obama for monday's inauguration. a preview of everything from security to the performances coming up next. i'm up next, but now i'm sging the heartburn blues. hold on, prilosec isn't for fast relief. cue up alka-seltzer. it stops heartburn fast. ♪ oh what a relief it is!

>>. >> gregg: thousands of national guard troops landing in d.c. and to keep the capital safe during monday's inaugural event. half a mill people will there to

witness and that is a fraction of the 2 million that came around last time. a daunting task for security teams that will have to keep an eye on everything going on. officials don't have any credible threats but there is concern about a lone wolf terrorist. katherine heritage. they have deemed this a national special security event? >> reporter: that is right, gregg. they call it nnse, secret service is the lead agency and f.b.i. is the lead agency for intelligence counterterrorism and investigations. then you also have a fema as the lead agency if there any kind of recovery response. earlier this week, fox news along with other organizations had a tour of the secret service command headquarters. this is undisclosed location in washington, d.c. and allows them to get realtime information about the situation across washington, d.c. area.

the f.b.i. is don't discuss the structure but here is how they explained it. >> currently this time we don't have any credible threats on any events. we will continue to monitor that. what we do ask is the public, those attending the event keep their eyes and ears open and report any suspicious activity to local law enforcement or to the f.b.i.. >> reporter: within the last hour we asked homeland security if there is going to be any change given the events in mali and algeria, at this time there is no specific threat. >> gregg: are officials what has become known as the longest mile? >> people who have handled the event call it the longest mile or hardest mile, the stretch of road behind me, 1600

pennsylvania avenue where you have the highest density of the crowd and most exposure for the president and first lady. in the scenario that the secret service and other law enforcement agencies are concerned about a lone wolf actor. to improvise explosive device or active shooter. we spoke to the former chief of staff for the secretary of homeland security who is part of the transition in 2009 between the bush and obama white houses and he handled security at the inauguration. >> if you don't have the ability to rapid reaction, suppression of fire, someone does trying to take out an active shooter, that is when you end up getting higher casualties. so there will be officers scattered throughout the route to provide suppression fire if there is any outbreak along the

route. >> reporter: it's important to emphasize it can be ex freelyly fluid. four years ago there was nothing specific but there was an active investigation into intelligence coming out of the al-qaeda affiliate in somalia and allegation they may be sending to suicide bomber to the inauguration but it shows how fluid it can be. >> gregg: thank you very much. inauguration falls on sunday and official swearing in will be a low key affair with a public celebration held off until monday. for just the second time in history the inaugural events fall on the martin luther king holiday. we're told the president will put his hand on a stack of bibles, one of them used by the late civil rights leader, the other used to swear in abraham lincoln. joining me is kris wallace. you have been covering, president reagan back in 1981

and be on hand for our coverage. great to see you. i was looking back at president obama's first inaugural address. he focused mainly on all the challenges that were posed by the financial crisis. what do you expect this time around? >> look, it's not going to be quite as much of an unknown. we know the president and he knows us after four years. he got tremendous sense of excitement about hope and change that we saw four years ago, we don't have that same sense of excitement today. we know he hasn't been able to break the partisan gridlock here in washington. he has an ambitious agenda, continue to not deal with the financial meltdown but financial problems, debt crisis, wall street than pennsylvania avenue and how we are going to solve our fiscal problems. you've got gun control which will be a top initiative and

have a domestic agenda when it comes to immigration reform and energy legislation. i think you'll see a focus in the first two years on domestic legislation because as time goes on from the moment he takes that oath of office, he is in sense a lame duck. power begins to ebb away from the white house and final two years, most second term presidents focus on foreign policy. >> gregg: i call in audio. we are getting breaking news, one american is dead in the algerian hostage standoff. let me get back to kris wallace, i know you have been following this, as well. many americans are deeply concerned about the hostages and sad news. this is i must attribute to the associated press. situation has been fluid but associated press, sources are saying one american is dead in the algerian hostage standoff.

this is tough moment for u.s. forces and the obama administration when they are offering assistance to try to rescue some of these americans, but not being given any permission by the algerians, chris? >> that's right. not given permission but not notified in advance that the algerian military was going to launch this raid on the oil field, the gas fields there in this month-man's land. the numbers whether it was 40 hostages, hundred hostages, how many americans, at one point it was two, another point it's been seven. this has been going on for two or three days. i don't think we have a clear picture how many americans were taken hostage in the first place how many are still being held. now this the first word we hear of an american being killed. >> gregg: some of the

information is coming from the algerian terrorists than what we're getting from the algerian government. kris wallace, catch him fox news sunday. he will be talking about this story but talking to senior advisor david plouffe about the second term and roy blunt on what republicans want to get done in the next four years. medical examiner held a news conference on the lottery winner that dropped dead right before he was supposed to collect his big jackpot. what he has to say about the cyanide in his system and then there is the wife.

>>. >> gregg: chicago medical

examiner's office reporting it has received samples from the remains of a lottery winner that was poisoned just as he was about to collect list big jackpot. they dug up the body and they ruled he died of natural causes but then they reclassified it as a homicide after lethal dose of cyanide was found in his system. his wife said he got sick after dinner and can't imagine who would want to hurt him. >> it's important to know that he died of cyanide poisoning and they are trying to figure out how it got into his system. it can be ingested or inhaled so that is why they exhumed the body to make the test. autopsy has been completed. they took samples from vital organs as well as hair, fingernails and probably the contents of his symptom. keep in mind the body was advance state of decomposition

that could hurt the autopsy a little bit and also there is a chance that they may not get the sample that they were looking for. listen to the medical examiner. >> cyanide over the post mortem period can potentially have a evaporate and leave the tissues. cyanide is no longer in the tissues after several months. >> but the body was not embalmed so it could raise the odds. we should find out two to four months. very important the contents of the symptom his wife fed him a meal, the stomach. only a he ate the meal and after he went to bed, that is whether he died. he was taken to the hospital but, of course, the cyanide poisoning was the lethal dose. now, we have to find out how it got into his system. >> gregg: and who would benefit

from his demise. that is the principle question, as well. trace gallagher, thanks very much. that is going to do it on studio "b." bill hemmer is in late 7:00 eastern, neil cavuto with your world coming up next. have a great day everyone. [ female announcer ] today, jason is here to volunteer to help those in need. when a twinge of back pain surprises him. morning starts in high spirits, but there's a growing pain in his lower back. as lin grow longer, his pain continues to linger. but after a long day of helping others, he gets some helpful advice.

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